DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 24.07.2017
Yesterday’s focus was on flash PMI indices from the industrial and service sectors. The PMI composite index in the eurozone fell in July to 55.8 points against 56.3 points. At the end of the previous month and estimates by 56.2 points. This is the lowest reading since February. German data was also below expectations. In Germany, the PMI index in industry was 58.3 points in July against 59.6 points. In June and expected 59.2 points. In the services sector the index was 53.5 points against 54.0 points. A month earlier and a consensus of 54.3 points.
Despite this, the DAX index slightly slowed down. The US stock markets have benefited, especially the Nasdaq Comp, which set a new historical record. In addition, according to FactSet, last Friday up to 73 percent companies from S&P 500 reported much better-than-expected quarterly results, with a total of 77 percent it was higher than consensus.
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Today Nikkei closed the session with -0.10%. Yesterday the S&P 500 ended the day in virtually the same place with a score of -0.11%. The DAX Index ended with -0.25%. The German index was established on 20 June this year. Historical maxima around 12951 points. However, he has not been able to stay on this level for too long. Since then he has lost about 5%. It is hard to talk about bear market (according to many sources the bear market starts with drops of at least 20%) but surely there is a stronger correlation. Time will tell whether the correction is going to grow, or maybe it will be an opportunity to move further up? It is impossible to hide that the market is heavily overvalued and even when it comes to rebound, this movement will be subject to considerable risk. However, the nearest end of correction signals can be found on support around 12200 points. At this point on the daily chart appeared hammer formation, which may also suggest a rebound in the near future.
DAX Intraday
The DAX index after the opening of the cash market rebounded from the pivot point level around 12200 points. He is currently heading for R1 near 12280 points. Breaking this area will open the way to R2 around 12320 points.
Key data for the DAX index
10:00 – German Ifo Business Climate
